China is cutting down already declining FDI growth from BVI and other countries?

Probably, the result of the changes in legislation about acquisition of Chinese companies by foreign investors may be further decline of foreign direct investment (FDI) in China, which is continuing already for several months. In accordance to Ministry of Commerce released statistics on the foreign funds absorbed by China in the first seven months, during the January-July period, a total of 24,652 new foreign-funded enterprises were approved to set up, down 2.02% year on year and growth rate compared to the same period of 2004 fell 15.12 percentage points. Foreign funds in actual use came to 33.09 billion US dollars, down 3.42% year on year and growth rate fell 6.14 percentage points.

Some experts, however, say that this decline does not mean loss of interest towards the country's economy, but just the end of investment rush. Anyway, the amounts of foreign direct investments may continue to fall, and that will refer not only to BVI but also to the other top countries and regions, who are investing in China and whose realized investments account for 86.26% of the country's total.

Currently, in accordance to the last 7 months results, BVI is one of the major FDI sources in China, along with Hong Kong and Japan. You can learn more about recent BVI positions in the market in the posts BVI as the 2nd largest foreign investor in China and BVI is again the 2nd to have invested in China.